Starting a Nonprofit in South Dakota

South Dakota is known for its scenic landscapes, vibrant communities, and supportive environment for businesses and organizations, including nonprofits. If you’re passionate about making a difference and are considering starting a nonprofit in South Dakota, this guide will help you navigate the process, from initial planning to official registration.

1. Define Your Mission and Vision

The first step in starting a nonprofit is to clearly define your mission and vision. Your mission statement should succinctly describe the purpose of your organization and the specific needs it will address. Your vision statement should outline the long-term impact you aim to achieve.

Example:

• Mission Statement: To provide nutritious meals and support services to homeless individuals in South Dakota.

• Vision Statement: A community where every individual has access to food and the resources they need to thrive.

2. Form a Board of Directors

South Dakota law requires nonprofits to have a board of directors. This group of individuals will be responsible for overseeing the organization’s activities and ensuring it stays true to its mission. Select individuals who are passionate about your cause and bring diverse skills and perspectives.

3. Choose a Name

Your nonprofit’s name must be unique and not easily confused with other organizations. Check the availability of your chosen name with the South Dakota Secretary of State’s office. You can do this online or by contacting their office directly.

4. Prepare and File Articles of Incorporation

To legally form your nonprofit, you need to file Articles of Incorporation with the South Dakota Secretary of State. This document includes essential information about your organization, such as its name, purpose, and the initial board of directors. You can find the necessary forms and instructions on the South Dakota Secretary of State’s website.

Key Information to Include:

• Name of the nonprofit

• Duration of the nonprofit (perpetual or a specific term)

• Purpose of the organization

• Name and address of the registered agent

• Names and addresses of the initial board of directors

5. Draft Bylaws

Bylaws are the rules and procedures for governing your nonprofit. They should cover topics such as board meetings, the election of directors, and the roles and responsibilities of officers. While bylaws are not filed with the state, they are crucial for the organization’s internal operations and are often required for other applications, such as tax-exempt status.

6. Obtain an Employer Identification Number (EIN)

An EIN is required for tax purposes and to open a bank account in your nonprofit’s name. You can obtain an EIN from the Internal Revenue Service (IRS) online, by mail, or by fax.

7. Apply for Federal Tax-Exempt Status

To be recognized as a tax-exempt organization under Section 501(c)(3) of the Internal Revenue Code, you must apply to the IRS. This involves submitting Form 1023 or Form 1023-EZ, along with the required fee. The application process can be complex, so consider seeking assistance from a professional or a knowledgeable advisor.

8. Register with the South Dakota Department of Revenue

In addition to federal tax-exempt status, you may need to register with the South Dakota Department of Revenue, especially if you plan to solicit charitable contributions. This registration helps ensure compliance with state regulations regarding fundraising and charitable solicitations.

9. Open a Bank Account

With your EIN and official paperwork, you can open a bank account in your nonprofit’s name. Choose a bank that offers services tailored to nonprofits, such as low fees and convenient online banking options.

10. Develop a Fundraising Plan

Fundraising is essential for sustaining your nonprofit’s activities. Develop a comprehensive fundraising plan that includes strategies for individual donations, grants, events, and corporate sponsorships. Utilize online platforms and social media to reach a broader audience and engage potential donors.

11. Create a Marketing and Outreach Plan

Building awareness of your nonprofit and its mission is crucial for attracting supporters and beneficiaries. Develop a marketing and outreach plan that includes a website, social media presence, and collaborations with other organizations and community groups.

12. Launch Your Nonprofit

Once you have completed the necessary steps and preparations, it’s time to officially launch your nonprofit. Host a launch event, reach out to local media, and start implementing your programs and services.

Conclusion

Starting a nonprofit in South Dakota is a rewarding endeavor that requires careful planning, dedication, and compliance with legal requirements. By following these steps and leveraging available resources, you can successfully establish a nonprofit that makes a positive impact in your community. Remember, ongoing governance, transparency, and community engagement are key to sustaining and growing your organization.